Industrial performance remains steady as policy shifts and new supply shape market fundamentals, the latest Yardi Matrix report shows.
Report Highlights
- National in-place industrial rents averaged $8.72 per square foot in September, rising 6.1 percent year-over-year.
- Vacancy climbed to 9.5 percent nationally, up 250 basis points in twelve months.
- Developers completed 219.4 million square feet of new space year-to-date.
- Projects under construction total 340.5 million square feet, or 1.7 percent of existing stock.
- Sales volume reached $52.5 billion, averaging $142 per square foot.
Industrial metrics reflect ongoing market reset
Key performance indicators show the industrial sector continuing to rebalance after several years of rapid growth. Rent increases slowed, vacancy rates edged higher and new leasing activity has become more measured. National in-place rents stood at $8.72 per square foot in September, according to Yardi Matrix data. Gains remain strongest in high-demand distribution hubs along the East and Southeast corridors, where population growth and infrastructure access support tenant expansion.
At the same time, vacancy reached 9.5 percent nationwide, a level last seen before the pandemic. The increase reflects both a normalizing pace of demand and the large volume of projects delivered since 2020, which now totals more than 2.7 billion square feet. Leasing conditions have become more balanced as the rent premium on new leases narrowed to $1.28 per square foot, signaling that supply additions are catching up with users’ space requirements.
Development and investment activity hold steady
Construction pipelines are trending toward sustainable levels following a period of record deliveries. About 340.5 million square feet—roughly 1.7 percent of national inventory—is under construction, while year-to-date completions stand at 219.4 million square feet. Developers continue to focus on logistics corridors and emerging secondary markets where modern space remains in demand.
Investment activity held firm, with $52.5 billion in industrial assets trading through September. The national average sale price was $142 per square foot, according to Yardi Matrix research. Pricing varied widely by market: Atlanta ($140) led major metros—up 31.3 percent year over year—followed by the Inland Empire ($178) and Northern New Jersey ($173), both above the national average. Dallas–Fort Worth ($128) and Chicago ($120) posted lower averages, reflecting a higher share of bulk distribution assets.
Read the full Yardi Matrix Industrial Market Outlook: October 2025.
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